ABC-EFG-CCOGS ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible ofP300,000 was recognized and is being amortized at the rate of P10,000 per year. The 2022 financialstatements+re as follows:АВСEFGSalesCost of goods soldOperating Expenses800,000(535,000)(100,000)35,000600,000(400,000)(100,000)Dividend IncomeNet Income200,000100,000Retained Earnings, beg1,300,000200,000(100,000)1,400,000850,000100,000Net IncomeDividend PaidRetained Earnings, end(50,000)900,000Cash and Receivables400,000300,000298,000902,000Inventory700,000Investment in EFGFixed AssetsAccumulated DepreciationTotals1,000,000(300,000)2,300,000600,000(200,000)1,400,000Labilities600,000300,0001,400,0002,300,000400,000100,000Ordinary ShareAccumulated ProfitTotals900,0001,400,000EFG sold ABC inventory costing P72,000 during the last six months of 2021 for P120,000. At year-end30% remained. EFG sells ABC inventory costing P200,000 during 2022 for P250,000. At year-end, 20% isleft. Compute for Consolidated Cost of Goods sold.

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ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible of P300,000 was recognized and is being amortized at the rate of P10,000 per year. The 2022 financial statementre as follows: АВС EFG Sales Cost of goods sold Operating Expenses 800,000 600,000 (535,000) (100,000) 35,000 200,000 (400,000) (100,000) Dividend Income Net Income 100,000 Retained Earnings, beg 1,300,000 200,000 (100,000) 1,400,000 850,000 100,000 (50,000) 900,000 Net Income Dividend Paid Retained Earnings, end Cash and Receivables Inventory Investment in EFG 400,000 300,000 298,000 902,000 1,000,000 (300,000) 2,300,000 700,000 Fixed Assets 600,000 (200,000) 1,400,000 Accumulated Depreciation Totals Labilities 600,000 300,000 1,400,000 2,300,000 400,000 Ordinary Share Accumulated Profit Totals 100,000 900,000 1,400,000 EFG sold ABC inventory costing P72,000 during the last six months of 2021 for P120,000. At year-end 30% remained. EFG sells ABC inventory costing P200,000 during 2022 for P250,000. At year-end, 20% is left. Compute for Consolidated Cost of Goods sold.

ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible of P300,000 was recognized and is being amortized at the rate of P10,000 per year. The 2022 financial statementre as follows: АВС EFG Sales Cost of goods sold Operating Expenses 800,000 600,000 (535,000) (100,000) 35,000 200,000 (400,000) (100,000) Dividend Income Net Income 100,000 Retained Earnings, beg 1,300,000 200,000 (100,000) 1,400,000 850,000 100,000 (50,000) 900,000 Net Income Dividend Paid Retained Earnings, end Cash and Receivables Inventory Investment in EFG 400,000 300,000 298,000 902,000 1,000,000 (300,000) 2,300,000 700,000 Fixed Assets 600,000 (200,000) 1,400,000 Accumulated Depreciation Totals Labilities 600,000 300,000 1,400,000 2,300,000 400,000 Ordinary Share Accumulated Profit Totals 100,000 900,000 1,400,000 EFG sold ABC inventory costing P72,000 during the last six months of 2021 for P120,000. At year-end 30% remained. EFG sells ABC inventory costing P200,000 during 2022 for P250,000. At year-end, 20% is left. Compute for Consolidated Cost of Goods sold.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible of P300,000 was recognized and is being amortized at the rate of P10,000 per year. The 2022 financial statementFre as follows: АВС EFG Sales Cost of goods sold Operating Expenses Dividend Income Net Income 800,000 600,000 (400,000) (100,000) (535,000) (100,000) 35,000 200,000 100,000 Retained Earnings, beg Net Income Dividend Paid 1,300,000 200,000 850,000 100,000 (50,000) 900,000 Retained Earnings, end (100,000) 1,400,000 Cash and Receivables 300,000 700,000 Inventory Investment in EFG Fixed Assets Accumulated Depreciation Totals 400,000 298,000 902,000 1,000,000 (300,000) 2,300,000 600,000 (200,000) 1,400,000 Labilities Ordinary Share Accumulated Profit | Totals 400,000 100,000 600,000 300,000 1,400,000 2,300,000 900,000 1,400,000 EFG sold ABC inventory costing P72,000 during the last six months of 2021 for P120,000. At year-end 30% remained. EFG sells ABC inventory costing P200,000…
Compute for the consolidated cost of goods sold.
Compute for the consolidated assets for 2020.
COMPUTE FOR CONSOLIDATED ASSET FOR 2020.
What is the consolidated cost of goods sold?
How much is the consolidated asset for 2022?
ABC acquired 70% of EFG on June 30, 2021. Based on EFG's acquisition-date fair value on intangible of P300,000 was recognized and is being amortized at the rate of P10,000 per year. The 2022 financial statements are as follows: ABC EFG Sales Cost of goods sold Operating Expenses Dividend Income Net Income 800,000 (535,000) (100,000) 35,000 200,000 600,000 (400,000) (100,000) 100,000 Retained Earnings, beg Net Income Dividend Paid 1,300,000 200,000 (100,000) 1,400,000 850,000 100,000 (50,000) 900,000 Retained Earnings, end Cash and Receivables Inventory Investment in EFG Fixed Assets Accumulated Depreciation Totals 400,000 298,000 902,000 1,000,000 300,000 700,000 (300,000) 2,300,000 600,000 (200,000) 1,400,000 Labilities Ordinary Share 600,000 300,000 400,000 100,000 Accumulated Profit Totals 1,400,000 2,300,000 900,000 1,400,000 ABC sold EFG inventory costing P72,000 during the last six months of 2021 for P120,000. At year-end 30% remained. ABC sells EFG inventory costing P200,000…
ABC-EFG
· On January 1, 2020, P Company acquired 80% of S Company for P2,000,000. The fair value of identifiable net assets is P1,800,000. NCI is measured at fair value. During 2020, P Company ships merchandise to S Company costing P800, 000 at 25% above cost. Additional data are as follows: Р Company 5,500,000 3,200,000 650,000 S Company 2,500,000 1,600,000 300,000 Sales Cost of Sales Operating Expense The ending inventories of S Company includes merchandise from P Company amounting to P50,000. Impairment of goodwill is P20,000. Consolidated cost of sales is reported at: a. P4,800,000 b. Р3,800,000 c. P4,010,000 d. P3,810,000
On January 1, 2022, P Company acquired 80% of S Company forP2,000,000. The fair value of identifiable net assets is P1,800,000. NCI ismeasured at fair value. During 2022, P Company ships merchandise to SCompany costing P1,000, 000 at 20% above cost. Additional data are asfollows:P Company S CompanySales 5,500,000 2,500,000Cost of Sales 3,200,000 1,600,000Operating Expense 650,000 300,000The ending inventories of S Company includes merchandise from PCompany amounting to P60,000. Impairment of goodwill is P20,000.How much is the consolidated gross profit?
Akron, Inc., owns all outstanding stock of Toledo Corporation. Amortization expense of $15,000 per year for patented technology resulted from the original acquisition. For 2018, the companies had the following account balances: Akron ToledoSales . . . . . . .. $1,100,000 $600,000Cost of goods sold 500,000 400,000Operating expenses 400,000 220,000Investment income . . Not given –0–Dividends declared . . .80,000 30,000 Intra-entity sales of $320,000 occurred during 2017 and again in 2018. This merchandise cost $240,000 each year. Of the total transfers, $70,000 was still held on December 31, 2017, with $50,000 unsold on December 31, 2018.a. For consolidation purposes, does the direction of the transfers (upstream or downstream) affect the balances to be reported here?b. Prepare a consolidated income statement for the year ending December 31, 2018.
On January 1, 2022 the Aquila Co. acquired 100% of the Taurus Co. when the fair value of Taurus net assets was P4,000,000 and their carrying amount was P3,500,000. The consideration transferred consisted of P4,400,000 in cash transferred at the acquisition date, plus another P200,000 in cash to be transferred 10 months after (November 1, 2022) the acquisition date if a specified profit target was met by Taurus.At the acquisition date, there was only a low probability, around 40% of the profit target is being met.On November 1, 2022, additional P200,000 was paid by Aquila to Taurus after the latter met the specified profit target.How much is the goodwill to be reported on December 31, 2022? a. P480,000 b. P600,000 c. P980,000 d. P400,000